Man Group keen on GLG buy as funds keep plunging

Hedge-fund operator Man Group today showed just how crucial its takeover of rival GLG could prove to be as it admitted its management fees were falling as the amount of funds being managed by the group dropped.

Investors were still withdrawing more money than they were putting in to Man's funds during the three months to the end of September, although the net outflow did slow to $600 million (£379 million).

This diminishing of the average size of its funds meant its fees fell, resulting in likely profit before tax for the half-year of $215 million, from $278 million in the previous half year, Man predicted.

Analysts said the GLG acquisition would bring in more funds.